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Cardano (ADA) whales have been notably active in recent days, accumulating over 10 million ADA tokens within just 24 hours, as the price of the cryptocurrency experienced a significant drop. According to on-chain analytics from Santiment, shared by crypto analyst Ali Martinez, this buying spree took place on January 7, coinciding with a broader downturn in the cryptocurrency market.
On January 7, the price of Cardano started its decline, dropping more than 15% from $1.153 to its current value of approximately $0.97. This price action comes as part of a wider market correction triggered by economic factors, including the rise in U.S. job openings in November. This increase in job vacancies raised concerns about a tightening labor market, which had a ripple effect on both traditional and cryptocurrency markets, contributing to the overall market pullback. Major equity indexes also saw a drop of over 1% on January 7.
Despite the short-term price decline, the Cardano network continues to make strides with ongoing developments. Notably, the upcoming Plomin hard fork, which builds upon the foundation set by the September Chang hard fork, is generating significant interest. The Plomin upgrade will allow ADA token holders to directly participate in Cardano’s future governance through a decentralized model. Token holders can delegate their voting power to Delegated Representatives (DReps) or assume the role of DReps themselves, enabling them to vote on key decisions on-chain.
In addition to governance enhancements, the Plomin hard fork also introduces several technical improvements. These include new Plutus primitives aimed at enhancing smart contract functionality and better support for Stake Pool Operators (SPOs), which will further strengthen the network’s infrastructure and ecosystem.
While the short-term price action may concern some, the continued development and increasing whale activity point to long-term confidence in Cardano’s future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
